UNITE HERE: Letter to China Securities Regulator Warns about Shen Wen, Zijiang Group
Sep. 04, 2018
BOSTON--(BUSINESS WIRE)--Sep 4, 2018--UNITE HERE, the North American hotel workers’ union, has sent a letter to the China Securities Regulatory Commission to bring attention to activities undertaken by Shanghai Zijiang Group (上海紫江（集团）有限公司) and two companies connected to its chairman Shen Wen. The letter raises questions about their relationship with Jiang Mianheng, son of Jiang Zemin.
“In the course of examining Marriott’s portfolio of hotels in China, we learned that Shen Wen’s Zijiang Group owned the Shanghai Marriott Hotel Hongqiao,” said UNITE HERE Deputy Director Jeff Nelson. “Our findings raised questions that touched on the integrity of China’s public stock markets. Consequently, we felt it was our duty to outline our concerns to the China Securities Regulatory Commission.”
According to UNITE HERE’s findings, two companies partially owned by Zijiang Group – Zijiang Enterprise and Well Tech – omitted from their IPO filings the fact that relationships between key shareholders in the companies effectively gave Shen Wen influence over a majority of the companies’ shares after the offerings. Despite a statement from Zijiang Enterprise that large shareholders had no relationship, this was called into question by publicly available shareholder information. Directors with the same names as directors of the major shareholders in Zijiang Enterprise served concurrently on the board of a Bermuda corporation.
“In addition to the concerns about the IPOs, we discovered that a Zijiang Group company sold a significant stake in Well Tech to another company, Shanghai Zizhu, at a price below market value. Because Shanghai Zizhu was founded by Jiang Mianheng, son of Jiang Zemin, we had questions about the transaction,” said Jeff Nelson.
The letter, which is hosted for the public on a union website, Marriott China Observer ( www.marriottchinaobserver.org ), was also sent to the Central Commission for Disciplinary Inspection and the Embassy of the People’s Republic of China in the United States.
About UNITE HERE
UNITE HERE represents 270,000 members working in the hotel, gaming, food service, manufacturing, textile, distribution, laundry, transportation, and airport industries in the U.S. and Canada including 17,000 employed by Marriott International. MarriottChinaObserver.org is maintained by the UNITE HERE Research Department.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180904005057/en/
CONTACT: UNITE HERE
Jeff Nelson, +1-617-480-2585
KEYWORD: UNITED STATES ASIA PACIFIC NORTH AMERICA CHINA MASSACHUSETTS
INDUSTRY KEYWORD: TRAVEL LODGING PROFESSIONAL SERVICES FINANCE
SOURCE: UNITE HERE
Copyright Business Wire 2018.
PUB: 09/04/2018 12:00 PM/DISC: 09/04/2018 12:00 PM